Core Viewpoint - Ying Tong Holdings has successfully listed on the Hong Kong Stock Exchange, becoming China's "first fragrance stock" within a year of submitting its prospectus [1]. Financial Performance - Ying Tong Holdings reported revenues of 1.699 billion yuan, 1.864 billion yuan, and 2.083 billion yuan for the fiscal years ending March 31, 2023, 2024, and 2025, respectively. Net profits for the same periods were 173 million yuan, 206 million yuan, and 227 million yuan [4]. - The company has shown continuous revenue growth, primarily driven by its agency business model, which heavily relies on fragrance brand representation [4]. Business Model and Brand Dependency - The company has secured agency rights for over 60 international fragrance brands, including Hermes, Chopard, Albion, Dolce & Gabbana, and Lola Marc Jacobs. Fragrance sales accounted for 89.3%, 88.5%, and 81.7% of total revenue for the fiscal years 2022 to 2024 [4][5]. - However, the heavy reliance on agency business poses a risk, as many beauty companies are reclaiming brand agency rights. Notably, Kering Group and Richemont Group have announced plans to take back control of their fragrance brands [6]. Brand Authorization Risks - As of March 31, 2025, Ying Tong Holdings has 65 external brands in its portfolio, with 4 brands no longer under its authorization. Among the remaining brands, 22 will see their authorization expire within a year, and 19 within one to three years [6]. - The loss of agency rights has already impacted the company's gross margin, which fell from 48.3% in fiscal 2023 to 45.8% in fiscal 2024 due to a non-renewed distribution agreement with a luxury brand [7]. Market Competition and Funding Needs - The competitive landscape in the cosmetics industry is intensifying, with rising price competition and marketing expenditures. This necessitates additional funding for companies to enhance market competitiveness, making IPO financing a crucial avenue for Ying Tong Holdings [7]. Strategic Initiatives - To mitigate risks and enhance growth, Ying Tong Holdings plans to use part of the raised funds to develop its own brands and invest in external brands. The company has already launched its own eyewear brand, Santa Monica, and entered the fragrance market in 2022 with five products [8]. - Currently, the revenue from self-owned products accounts for less than 1% of total revenue, indicating significant room for growth in this area [8].